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incidence of income taxation from the parent to the child except
to the extent that custodial funds are used to discharge the
support obligation of the parent. J.T. Henry & Associates, Inc.
v. Commissioner, 80 T.C. 886, 890 (1983). The record does not
show whether there were any dividends from the Daisy stock or the
Gibraltar stock that petitioner used to support his son while he
was a minor (i.e., prior to December 3, 1987, when he became 18).
Based on the entire record before us, we find that peti-
tioner has failed to satisfy his burden of proving that he owned
the Daisy stock and the Gibraltar stock on April 27, 1989, the
date on which those stocks were sold. Accordingly, we reject
petitioner's claim that during 1989 he realized long-term capital
losses on the sales of those stocks.
Claimed Nonbusiness Bad Debts
Section 166(d) allows a deduction for a nonbusiness debt
that becomes worthless during the taxable year. A nonbusiness
debt is defined in section 166(d)(2) as a debt other than (1) a
debt created or acquired in connection with a trade or business
of the taxpayer or (2) a debt the loss from the worthlessness of
which is incurred in the taxpayer's trade or business.
Only a bona fide debt qualifies as debt for purposes of
section 166. A bona fide debt is a debt that arises from a
debtor-creditor relationship based upon a valid and enforceable
obligation to pay a fixed or determinable sum of money. Sec.
1.166-1(c), Income Tax Regs. Whether a bona fide debtor-creditor
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